The calculation of the Extreme Poverty Line is restricted to the food basket. The number of food items and the amount of each item are based on the minimum caloric requirements needed to keep the body alive. The caloric standard (the average number of kilocalories per capita required in a population) is a function of age structure and gender in the country or region, as children and women have lower energy requirements than adults or men, respectively (FAO-WHO, 2004). Because the Galapagos population has more men than women (2010 Census), it has a higher caloric standard (2.218 kcal/person) than the rest of the country (2.159 kcal/person).
Based on the food basket and the caloric standard of the province, the cost for daily food consumption for a Galapagos resident is US$2.61.
Some homes produce a certain amount of their own food. To avoid underestimating consumption of specific sectors of the population, particularly rural households, the value of these self-supplied items are calculated based on normal purchase prices.
The Poverty Line in Galapagos is calculated based on the food basket as well as the other four baskets of goods and services (Figure 5). In the case of Galapagos, the CGREG proposed adjusting the cost of water to include freshwater sources. Furthermore, in the case of durable goods, the CGREG included boats and freezers to better determine the cost of living of those who depend on fishing and tourism. In addition, urban and interisland transportation, and travel between Galapagos and the continent were itemized to more accurately calculate the overall cost of transportation. With these additions, the Poverty Line in the province (the minimum consumption of food, goods and essential services of a Galapagos resident per day) is $5.79 in 2009 prices (Figure 6).
According to the economic approach of Poverty Lines, there is no extreme poverty in Galapagos. All of the inhabitants have enough monetary resources to allow them to guarantee at least the minimum required food intake. However, there is poverty; 8% do not have sufficient resources to enable them to meet basic demands for other goods or services, indicating that there is a vulnerable portion of the population that is very close to the poverty threshold.
In the rural areas of Galapagos there is a slightly higher incidence of poverty compared to urban areas (11% poverty in rural areas, 8% in urban areas; Figure 7). Areas with lower economic dynamics include Floreana Island and some rural areas of the other islands. On Floreana, 22% of 145 inhabitants (according to the 2010 Census) recorded lower levels of consumption of goods and basic services, probably because some of the items included in the baskets, such as entertainment services, are not available. In Tomas de Berlanga, a rural area on Isabela, 20% of its 164 inhabitants are in poverty (Figure 7).
When comparing poverty lines in Galapagos with other regions or countries, it must be remembered that the economic values of each region are determined by their specific economic dynamics (Table 4). Different poverty levels can exist in different regions within a single country. For example, in the United States, three poverty lines are calculated, one for the contiguous states and two more for Alaska and Hawaii, where prices are higher. The same applies to Galapagos in relation to continental Ecuador.
24.9% 61.5% 38.3% 7.7% 10.6% 8.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Urban Rural Total Ecuador (2006) Galapagos (2009)
A - Galapagos and Ecuador by Area B - Cantons of Galapagos
* Floreana is a rural parish of the San Cristóbal canton
7.4% 9.3% 8.3% 21.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
San Cristóbal Isabela Santa Cruz Floreana
C - Cantons of Galapagos by area
7.2% 9.6% 8.5% 7.8% 20.7% 10.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
San Cristóbal Isabela Santa Cruz Urban Rural
Figure 7. Poverty according to the Poverty Lines method, by different areas. Source: Living Conditions Survey – Galapagos 2009-2010 (INEC & CGREG); results of Poverty of Ecuador from INEC.
Table 4. Poverty Lines of Ecuador and other countries. Source: 1INEC, 2CGREG, 3Misión para el Empalme de las Series de Empleo, Pobreza y Desigualdad
& DANE, 4Comisión Consultiva para la Estimación de la Pobreza & INEI, 5U.S. Census Bureau, 6Secretaría de Estadísticas de la UE.
Country/Region Dollars per day per capita*
Ecuador
Ecuador (2006)1 $ 1.90
Galapagos (2009)2 $ 5.85
Community of Andean Nations
Colombia (2009)3 $ 4.35
Perú (2007)4 $ 2.44
United States (2009)5
Contiguous states and other territories $ 10.83
Hawaii $ 12.46 Alaska $ 13.53 European Union (2007)6 Spain $ 29.24 Bulgaria $ 8.08 Luxembourg $ 62.59
*Except for the United States, the conversion to dollars was done by CGREG using the available information from each country’s Central Bank for the year indicated.
0 % 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Perfec ta igualdad Perfec t Equalit y Galápagos 2009 Galapagos 2009 Ecuador 2006 Ecuador 2006
Percentage of the population
Per cen tage of r esour ces Gini Index (Galapagos 2009) = 33.85%Gini Index (Galapagos 2009) = 33.85%
Figure 8. Poverty by the Poverty Lines method for Galapagos and Ecuador. Source: Living Conditions Survey – Galapagos 2009-2010 (INEC & CGREG). Processing and analysis: CGREG.
Distribution of resources among the population
The Lorenz Curve represents the distribution of income or resources within a society and is used to calculate the Gini index, which is a measure of inequality. The Lorenz Curve for Galapagos (Figure 8) is a function of the food and basic goods and services of the population. The diagonal line represents equal distribution across the population, while a curved line indicates the actual inequality in distribution patterns. The farther the curve is from the diagonal line, the greater the inequity.
In 2009, the Gini index for Galapagos was 34%, compared to 46% for Ecuador as a whole in 2006. This means that the distribution of goods among the inhabitants of the islands is more equitable than in the rest of the country. The average daily per capita consumption in Galapagos during this period was US$16.28 (± $ 0.34), with a minimum of US$2.65 (very close to the extreme poverty line) and a maximum of US$170. More than 50% of the population has daily consumption between US$8.70 and US$20.
Conclusions and recommendations
According to the Unsatisfied Basic Needs Index (UBNI), one in 10 people in Galapagos is in a situation of extreme poverty (lacking access to two or more basic needs) and another 40% is at the non-extreme poverty level (lacking access to a basic need). The most common conditions that contribute to this situation are inadequate sanitary conditions and critical overcrowding.
On the basis of the UBNI, of the 24 provinces of Ecuador, only two (Pichincha and Azuay) have lower poverty levels than Galapagos, where the poverty rate is 52%. As in the rest of the country, rural areas of Galapagos have a higher incidence of poverty (78%) than urban areas (47%), largely due to the dispersion of the population and the difficulty of achieving coverage of basic services.
These results indicate the importance of improvements - especially in rural areas – to public water systems, housing, and wastewater management systems (either septic tanks or sewage systems).
According to the Poverty Lines methodology, there is no extreme poverty in Galapagos, but a segment of the population (8%) is very close to the threshold and should be considered in a vulnerable situation. This methodology confirms a higher incidence of poverty in rural areas. It also indicates that although there is inequity in the distribution of goods among the inhabitants of Galapagos, there is a higher level of equity in the islands than in the rest of the country.
References
CEPAL. 2007. Compendio de mejores prácticas en la medición de la pobreza. Publicación de la Cumbre de Expertos en Estadísticas de Pobreza – Río de Janeiro 2007, Talleres Gráficos de CEPAL, Santiago de Chile - Chile.
FAO-WHO. 2004. Human energy requirements: Report of a joint FAO/WHO/UNU Expert Consulation. http://www.fao.org/ docrep/007/ y5686e/y5686e00.HTM. Date of last visit: January 2012.
CGREG. 2010. Medición de pobreza en Galápagos: Método de las líneas de pobreza. Informe técnico de M Granda, S González, y V Calvopiña. Talleres gráficos del Consejo de Gobierno del Régimen Especial de Galápagos. http://www.cgg. gob.ec/siig/. Date of last visit: October 2012.